Italians & Luxury Goods (Consumer Behavior Analysis)

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Global Consumer Behavior @ Emerson College

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  • Live in a low-trust society Trust with “in group” is easily established Takes much longer to trust “out group” members
  • Italians & Luxury Goods (Consumer Behavior Analysis)

    1. 1. Luxury Goods in Italy & Consumer Behavior By: Emily Purdie, Zeenat Rasheed, Valerie Reynolds & Sonam Sagar
    2. 2. Italy and Trompenaars <ul><li>Particularism, and attitude towards counterfeit goods </li></ul><ul><li>Affectivity, and assigning status </li></ul><ul><li>Communitarianism, and social influences </li></ul><ul><li>Time Orientation, and loyalty to older luxury brands </li></ul><ul><li>But before we begin… </li></ul>
    3. 3. La Bella Figura <ul><li>“ The Beautiful Figure” </li></ul><ul><li>Emphasizes beauty, good image, aesthetics and proper behavior </li></ul><ul><ul><li>Clothing and Fashion </li></ul></ul><ul><ul><li>Rules of Etiquette </li></ul></ul><ul><ul><li>Loyalty to Family and Friends </li></ul></ul><ul><ul><li>Understanding of Good Taste </li></ul></ul>
    4. 4. Spot the Fake!
    5. 5. Made in Italy… Or Not <ul><li>Italy… </li></ul><ul><ul><li>3 rd largest global producer of counterfeit goods; largest in Europe </li></ul></ul><ul><ul><li>Number 1 consumer of fake products </li></ul></ul><ul><ul><li>Counterfeit leather good industry in Italy is worth $1.5 billion! </li></ul></ul><ul><ul><li>80% of consumers admit to have knowingly bought fake goods </li></ul></ul><ul><ul><li>Fakin’ the Ferraris </li></ul></ul><ul><ul><ul><li>“ Trying to impress neighbors and other road users...” </li></ul></ul></ul>
    6. 6. Italian Particularism <ul><li>Nonchalant, ‘bend the rules’ attitude likely stems from desire for La Bella Figura </li></ul><ul><li>Little respect for intellectual property or law </li></ul><ul><li>Always looking for a ‘good deal’ </li></ul><ul><ul><li>Hopping across the pond for Prada </li></ul></ul><ul><li>Low enforcement of rules </li></ul><ul><ul><li>Civil offense, punished by a fine </li></ul></ul>
    7. 7. Hey Ladies, Guess What?
    8. 8. Don’t Be a Stiff! <ul><li>As early as 14 th century, nobility showed status and authority through gesturing </li></ul><ul><li>Mocked Spanish for lack of animation </li></ul><ul><ul><li>“ Man, or a figure of wood” </li></ul></ul><ul><ul><li>Physical stiffness associated with arrogance </li></ul></ul><ul><li>Outwardly displayed symbols of luxury </li></ul><ul><ul><li>Coats of arm, special seals </li></ul></ul>
    9. 9. Italian Affectivity <ul><li>Luxury goods and affective behavior both associated with status, La Bella Figura </li></ul><ul><li>Tied together by their shared history, i.e. the desire to express status and differentiate elegant Italians from others </li></ul>
    10. 10. Family Matters
    11. 11. Sempre Famiglia! (Family Forever) <ul><li>Italians appear fashionable and modern </li></ul><ul><ul><li>But their values are more traditional than Americans </li></ul></ul><ul><li>Place great deal of emphasis on family and relationships </li></ul><ul><ul><li>Grown children live with their parents </li></ul></ul><ul><ul><li>Strangers are not invited into the home, and are met with in a restaurant or café </li></ul></ul><ul><ul><li>Live in a low-trust society </li></ul></ul>
    12. 12. Italian Communitarianism <ul><li>Look to family to provide positive reinforcement and advice about luxury goods </li></ul><ul><ul><li>Trust family more than salesperson </li></ul></ul><ul><ul><li>Luxury products enhance own La Bella Figura, as well as the family’s </li></ul></ul>
    13. 13. Brands: Then and Now
    14. 14. “ All the flowers of tomorrow are in the seeds of yesterday...” <ul><li>Luxury goods typically produced by small, family-owned companies </li></ul><ul><li>Ferragamo, Versace and Prada are wary of being publicly owned </li></ul><ul><li>Italians value old-world craftsmanship </li></ul><ul><li>Pass skills on to the next generation </li></ul><ul><li>70% of new brands fail </li></ul>
    15. 15. Italian Synchronic Time Orientation <ul><li>Italians carry their pasts with them </li></ul><ul><li>Older brands are.. </li></ul><ul><ul><li>Prestigious, respected, preferred </li></ul></ul><ul><ul><li>Truthful, wise </li></ul></ul><ul><ul><li>Add stability to people’s lives </li></ul></ul><ul><li>Italian fashion today is still inspired by early years </li></ul><ul><ul><li>Major fashion trend is the reinvention of older luxury fashion houses </li></ul></ul><ul><ul><li>Successful new brands are inspired by old designers </li></ul></ul><ul><ul><li>Focus on quality and simple lines which transcend time and place </li></ul></ul>
    16. 16. Conclusions <ul><li>Italians value the idea of getting a ‘good deal’ </li></ul><ul><li>See their heritage reflected in ownership of luxury products </li></ul><ul><li>Seek approval from family before making high-end purchases </li></ul><ul><li>Cherish craftsmanship traditions and older brands </li></ul>
    17. 17. Marketing Recommendations <ul><li>Emphasize the value of high quality, original, beautiful products as a means of enhancing La Bella Figura </li></ul><ul><li>Use celebrity endorsements to convey status and social approval </li></ul><ul><li>Focus on the history of the brand and product craftsmanship to showcase prestige </li></ul>
    18. 18. Ciao Bella!

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